Bright Future Technology (HKG:1351) plans to offer three rights shares for every one consolidated share at a subscription price of HK$0.600 per share, according to a filing with the Hong Kong Stock Exchange on Tuesday.

The company will issue up to 360 million rights shares, assuming full subscription and no change in its share base before the record date. The rights issue is expected to raise net proceeds of about HK$207 million.

The subscription price represents a discount of about 29% to the last closing price of HK$0.845 per consolidated share, the filing said.

The rights issue is subject to a proposed five-for-one share consolidation and an increase in authorized share capital.

The company will use the proceeds for AI development, expansion of its marketing business, and working capital.

Shares of the firm were up nearly 18% in Wednesday morning trade.